Is the end nigh for the backyard in NSW?

THE great Aussie backyard is disappearing faster in New South Wales than in any other state, according to a new report.

The largest concentration of medium density properties is in Sydney, but trends vary widely in regional areas. Picture: Kevin Farmer

THE great Aussie backyard is disappearing faster in New South Wales than in any other state, according to a new report.

The Bankwest Housing Density Report found that more than half of all dwelling approvals in the state over the last 12 months were for units, townhouses or semi-detached houses.

Medium density housing makes up 31% of existing stock in the state, which is already the highest of any Australian state.

The largest concentration of medium density properties is in Sydney, but trends vary widely in regional areas.

Bankwest Retail chief executive Vittoria Shortt said high property prices had made the Australian dream of a stand-alone house in the suburbs harder to achieve and changing demographics were contributing to the changing property landscape.

"People are increasingly choosing medium density housing as a more affordable alternative," Ms Shortt said.

"The popularity of medium density housing will likely be maintained as older Australians continue downsizing to more manageable self-contained units and first-time buyers look to medium density dwellings as a cost-effective option," she said.

The report revealed that almost two in five (38%) Australian home approvals over the past 12 months were for medium density dwellings, compared to fewer than one in three (31%) only five years ago.

Outside of Australia's capital cities, areas with the highest proportion of medium density housing approvals were predominantly found in tourist and mining areas.

Nationally, the number of medium density housing approvals has dropped by 6% compared to last year, however compared to five years ago the number of medium density housing approvals has increased by 18%.